Ask Liz Weston

Get smart with your money

banking

Q&A: Mysterious bank charge needs investigating

By

Dear Liz: The other day I went to my credit union to withdraw $1,000 to pay for my sister’s burial. The bank teller kept $90 and gave me only $910. Is that done when a person withdraws cash from a bank account? I got very angry and complained to the manager of the bank, but to no avail. He did not do anything to try and get my money for me. I am a low-income senior citizen and appreciate any kind of advice you could give me.

Answer: It’s hard to imagine any legitimate bank fee that would take almost 10% of a cash withdrawal. In any case, the manager should have been able to explain why the money was taken. If the teller stole the money from you and the manager simply didn’t believe you, calling the police may have been an option. A count of the teller’s till might have revealed the discrepancy.

Consider returning to the credit union with a friend as a witness and asking the manager to explain why the teller kept $90 from your withdrawal. If the explanation doesn’t satisfy you, you can lodge a complaint with the credit union’s regulator. The National Credit Union Assn. regulates federal credit unions and can be found at NCUA.gov. For a state-chartered credit union, contact your state’s financial services regulator.

Q&A: What to do when your bank gets picky about accepting a power of attorney

By

Dear Liz: My husband’s brother had a stroke and is now incapacitated. My husband needs to take over his finances. The bank will not accept the durable power of attorney that they set up 14 years ago because it is “too old.” Another bank asked me if it was set up less than six months ago, because that would avoid problems. How can you do the right thing if there are so many obstacles?

Answer: Banks and other financial institutions have gotten so persnickety about accepting powers of attorney that some states have passed laws forcing them to do so — and yet people still report having problems, even in those states!

Many institutions want you to use their own forms, which may not be possible once someone is incapacitated. Even if the person is willing to fill out the form before the fact, using a financial institution’s power of attorney can create problems if the language in those forms contradicts the person’s other estate planning documents. Then there’s the sheer hassle factor, especially if the person has accounts at multiple banks and brokerages.

You may be able to break through this logjam by hiring an attorney to contact the bank. You can get referrals to lawyers experienced in this issue from the National Academy of Elder Law Attorneys.

Friday’s need-to-know money news

By

Today’s top story: Why traditional credit scores still matter. Also in the news: Staying ahead of travel scams, banks still playing with financial fire, and the benefits to maxing out your retirement contributions early in the year.

Newfangled Data Aside, Credit Scores Still Matter
Those 3 numbers still reign supreme.

Stay a Step Ahead of Travel Scams
Traveling safely.

After ’08 Meltdown, Banks Still Play With Financial Fire
And we’re the ones who get burned.

Should You Max Out Your Retirement Contributions Early in the Year?
A new study shows interesting results.

Tuesday’s need-to-know money news

By

Today’s top story: Bartenders spill secrets for keeping your tab in check. Also in the news: How a remodeling project changes your property tax bill, tips for back-to-school shopping, and how to use your bank’s automatic transfer tools to make budgeting easy.

Bartenders Spill Secrets for Keeping Your Tab in Check
Avoiding a financial hangover.

How a Remodeling Project Changes Your Property Tax Bill
That new bathroom just increased your home’s value.

Cross Items Off Your Back-to-School List With These Tips
Almost time to go back to school.

How to Use Your Bank’s Automatic Transfer Tools to Make Budgeting Easy
Automating your banking can make saving money easier.